Central Excise Item 34 - Tractors - Inclusion of value of certain accessories towards assessable value of the tractors - Regarding - Central Excise - 28/90

Central Excise Item 34 - Tractors - Inclusion of value of certain accessories towards assessable value of the tractors - Regarding Circular No. 28/90 Dated 30-11-1990 [From F. No. 6/14/90-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise Item 34 - Tractors - Inclusion of value of certain accessories towards assessable value of the tractors - Regarding. I am directed to say that a doubt has been expressed as to whether value of linkage draw bar, trailer hook and plough lamps fitted with tractors should be taken into account while arriving at the assessable value of the tractors. 2. It has been reported that certain manufacturers are clearing accessories like linkage draw bar, trailer hooks, plough lamps duly fitted with tractors without including the value of such accessories for the purpose of assessment of tractors. It has been further reported that linkage draw bar and towing hooks are optional accessories and the tractor can be used without such accessories. Therefore, doubts have been expressed as to whether value of such accessories should be taken into consideration for purposes of arriving at the assessable value of tractors. 3. The issue came up for discussion in the North Zone Tariff Conference. The conference felt that it would be more appropriate to stick to the age old Central Excise Rule in this regard i.e. to assess the goods in the form they are delivered for sale at the factory gate. Since in this case the tractors were cleared with the items like linkage draw bar, trailer hook and plough lamps, their value should be added while arriving at the assessable value. 4. The issue has been further examined in the Board. The assessable value of the goods has to be arrived at having regard to the form in which they are ready for clearance at the factory gate. All the accessories are fitted to the tractors at the time of clearance from the factory gate. Therefore, the cost of all these accessories has to be added for the purpose of arriving at the assessable value of the tractors. 5. This may be brought to the notice of the trade and field formations. 6. Recipt of this letter may be acknowledged. 7. Hindi version follows.